+353 (0)74 9321420 info@mlmg.ie

(but only if the policy is in force before 21st December 2012!)

It’s a fact – women don’t tend to have enough life and specified illness cover. Stay at home mums tend to have least cover of all – and although they don’t “earn a salary”, what would it actually cost to replace the work they do in the home?

The majority of women are unaware that life assurance for women generally costs much less than for men, according to a recent survey by one of the major life companies. For example a 20 term life policy for a 35 year old woman with €250,000 of cover can cost as little as €17.17 per month* – the same cover for a 35 year old man starts at €19.72 per month* – 15% more expensive.

Statistically women live longer, therefore pose a lower risk and pay less for their life cover. However, the time to take advantage of this gender difference is fast running out.

By now most of you will have heard about the EU Gender Directive – we have had a couple of blogs on this topic earlier in the year. From the 21st of December 2012 (G-Day) there will be fundamental change to how insurers calculate their premiums; from that date – by law – gender can no longer be taken into account when calculating premiums on individual policies.

How will premiums be affected?
Firstly, it is important to note that the directive will not impact pricing on existing policies, only policies that come into force on or after the 21st December are affected by it. Any new policies taken out (and in force) before the 21st December will be priced under existing gender rules.

Secondly, be aware that life insurance products are long term products, so even a small change in price can have a significant impact – for example: an increase of €15 per month on a 25 year term policy amounts to €4,500 over the life of the policy.

Broadly the expected rate changes on the various products are as follows:

Life Cover
Women: moderate to significant increases – those with no cover should look at this now
Men: marginally lower rates

Serious Illness Cover
Women: little change for younger lives – rates for older lives may increase
Men: younger male lives will increase – possible small reduction for older lives

Cancer cover
Women: lower rates
Men: moderate to significant increases – those without cover should look at it now

Income Protection
Women: lower rates
Men: moderate to significant increases – those without cover should look at it now

What should you do?

Look at your life, serious illness and income protection cover now:

If you have existing cover
Meet with your financial advisor and get your cover reviewed to ensure it still meets your needs: do you have the level of cover you need and are getting good value for money?

If you don’t have any cover
Meet with an independent financial advisor to assess what your needs are. They will be able to provide you with quotes for the cover you need.

Remember time is fast running out – applications do take time to process and to avail of current rates the cover must be in force before the 21st December – so if you need cover, act now!

Whilst every case is different, for many there is an opportunity to put cover in place now at rates which will not exist after December 21st.

This article does not constitute financial advice. You should always seek independent professional advice when entering into or amending your life cover products.

(*Source: Best Advice 20/11/12)

For more information or to arrange an appointment contact MLMG Financial Advisors, St Helens, St Oran’s Road Buncrana, Co. Donegal. Tel +353 (0)74 9321420 / Fax +353 (0)74 9321421/or email: info@mlmg.ie

McLaughlin McGonigle t/a MLMG Financial Advisors is authorized to undertake investment business in Ireland by the Association of Chartered Certified Accountants